August 25, 2017 / 6:35 AM / in a year

Private consumption drives German growth in second quarter

BERLIN, Aug 25 (Reuters) - The German economy grew by 0.6 percent in the second quarter of 2017, helped by private consumption and state spending, data showed on Friday.

Confirming a preliminary reading for growth, the Federal Statistics Office said consumption rose by 0.8 on the quarter and state spending 0.6 percent. Private consumption contributed 0.4 percentage points to growth.

Investment in construction jumped 0.9 percent, adding 0.1 percentage points to growth. A growing population, increased job security and record-low interest rates are fuelling consumption and helping a property boom in Europe’s biggest economy.

Investment in machinery and equipment rose 1.2 percent, adding 0.1 percentage points to the gross domestic product (GDP) growth rate.

The data also showed that exports rose 0.7 percent on the quarter and imports increased by 1.7 percent, resulting in trade subtracting 0.3 percentage points from growth. (Reporting by Joseph Nasr; Editing by Paul Carrel)

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